driving training simulator Market

The driving training simulator market is expected to grow from US$ 1,950.00 million in 2021 to US$ 2,646.73 million by 2028. It is estimated to grow at a CAGR of 4.6% from 2022 to 2028.

The driving training simulator market is anticipated to witness growth due to the increasing demand for simulation training of autonomous vehicles and the rising use of simulators in police and emergency vehicles. Some countries have also made driving simulators compulsory in driving schools, which is expected to boost market growth. The driving simulators aid learners in adapting to road situations and developing safe driving habits. For instance, Singapore made it mandatory for learners to complete driving simulator training modules in December 2019. Therefore, the growing significance of driving simulators in driving schools is expected to drive regional market growth.

The demand for driving simulators is increasing in Europe due to their use in vehicle testing and training novice drivers. Leading players in the automotive industry are investing in developing driving simulators to cater to this demand. For instance, Honda R&D Europe invested in R&D to develop driving simulator technology in 2019. This new technology, DiM250 (Driver-in-Motion), is based on architecture and installed at Honda R&D Europe's technical center in Offenbach, Germany. The DiM250 system is designed by simulator software developer VI-grade GmbH and is manufactured and engineered by automatic controls specialist Saginomiya. Additionally, in 2022, VI-grade and Stackpole Engineering Services announced their strategic partnership to advance research and development efforts in tire testing, modeling, and simulation application. These initiatives are driving market growth in Europe.

The Europe driving training simulator market is anticipated to witness substantial growth over the forecast period. Every year, various car-racing sports, such as Formula 1, Nascar, and IndyCar, are hosted in European countries. These events are expected to attract progress and innovations in the driving training simulator market.

Apart from the increasing popularity of autonomous vehicles, the self-driving vehicle market in China is also growing rapidly. Several companies such as Pony.ai, Baidu, DeepRoute, and AutoX have been testing autonomous vehicles on the roads of Shenzhen. This trend towards autonomous vehicles is expected to have a positive impact on the driving training simulator market. Additionally, government initiatives and advancements in the automotive industry are anticipated to be crucial factors in the growth of the market. For instance, the Australian government has allocated approximately US$17 million to the Keys2Drive program over the next five years, which incorporates simulators into its training program.

The driving training simulator market is mainly dominated by players such as Autosim AS, Bosch Rexroth AG, Cruden B.V., DALLARA, and ECA Group. Further, these players expand their business through new product launches, market initiatives, investment in technology upgrades, mergers & acquisitions, and other joint activities.

A strategic partnership between VI-grade, a simulation and driving simulator company, and Stackpole Engineering Services, a provider of engineering solutions to tire and vehicle OEMs and suppliers, was announced in 2022. This collaboration aims to boost research and development efforts in areas such as tire testing, tire modeling, and simulation application.

Market players are implementing various strategies to expand their regional footprints. For example, in 2020, IPG Automotive GmbH opened a new office in Stuttgart, Germany, to offer the customers and partners even broader and more direct support for their projects.

COVID-19 Impact on Driving Training Simulator Market Size

The market growth of driving training simulators in Europe was impeded due to the COVID-19 pandemic. The production facilities of major automobile companies such as Mercedes, Volkswagen, Toyota, and Renault were shut down, hindering market growth. Despite these companies adopting driving simulators for vehicle testing and safety measures, the pandemic delayed or stopped several driving training simulation activities. Furthermore, driving schools providing simulation solutions were closed due to lockdown restrictions. The market was further affected as major sports events like Formula 1, and Nascar was canceled during the pandemic.

The uncertain economic situation has led to a decrease in consumer demand for new cars, resulting in reduced willingness to make significant purchases, and ultimately impacting driving training centers in the US and Canada. Consequently, the market for driving training simulators for passenger vehicles has witnessed a decline. Nevertheless, there has been a recent surge in the demand for driving simulators from 2021 onwards. Drivers participating in sports events require simulation training and practice to gain a virtual environment experience.

Companies profiled in the driving training simulator market study are Autosim AS; Bosch Rexroth AG; Cruden B.V.; DALLARA; ECA Group; IPG Automotive GmbH; Moog, Inc.; Nvidia Corporation; Tecknotrove; and Vi-Grade GmbH. Driving training simulator market players are following both organic and inorganic growth strategies to sustain the competitive edge. The market growth for driving training simulators is expected to be positively impacted by various initiatives, such as investments in research and development and the establishment of virtual reality (VR) simulator training centers. For instance, in Chennai, India, the Automobile Association of Southern India (AASI) established Asia's only 5th Generation VR-based simulator center. These initiatives by major players in the industry are likely to contribute to the driving training simulator market growth in the forecast period. Additionally, in December 2021, Adacel Technologies Limited announced a five-year contract worth around US$ 1 million with Airservices Australia for support services for their control tower simulator (CTS).

The driving training simulator market analysis has been conducted using primary and secondary sources. The research process began with extensive secondary research, gathering qualitative and quantitative information from internal and external sources. The aim was to obtain an overview and forecast of the driving training simulator market size for all market segments. Industry participants and commentators were interviewed to validate the data further and gain more analytical insights. These participants included VPs, business development managers, market intelligence managers, national sales managers, external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the driving training simulator market.